2020 INTEGRATED REPORT

CORPORATE GOVERNANCE REPORT (CONTINUED) is conducted annually. Increases are determined by REMCO in conjunction with executive management and take into consideration market related increases, individual and PPS Group performance and other economic indicators. REMCO reviews staff increases as determined by management and approves increases for Group Executives and senior management. ~ Benefits: PPS Group provides its employees with additional elements of remuneration, including medical aid, retirement fund and risk benefits, such as death, disability and funeral cover. These benefits form part of the TCTC package structure. Employees also participate in reward and recognition schemes to enable performance and motivation to drive PPS Group initiatives and objectives, alignment with business, as well as living up to the PPS Group’s values. ~ Short-term Incentive: PPS Group’s short-term incentives aim to reward short-term performance in the form of an annual cash bonus. This is linked to achieving financial, strategic and operational objectives against objectives set by line management. The pool available for short-term incentives is influenced by the financial performance of the Group. With the aim of increasing a high-performance culture across the Group and remaining competitive in the industry for high calibre talent, it was important to review the principles applicable to the short-term incentives during 2020. The principles reviewed and added to the policy are principles such as determination factors applied to the short-term incentive pool size, allowing for sufficient differentiation between performers and non-performers, being more inclusive and competitive at each work level (i.e. operational vs. management) and guidelines on how the bonus pool is to be allocated to ensure higher bonus reward to high performing employees. For the sales employees, variable commission structures are in place and these are detailed in the subsidiaries’ remuneration structures. ~ Long-term Incentive: The key objective of the long-term incentives is to focus participants on long-term key performance indicators in line with the vision, strategy, roles, expectations, financial and risk parameters of the organisation. Long-term incentives are structured to ensure alignment of the interests of management and staff with members’ interests. REMCO has final discretion over the participation of eligible employees in long-term incentives, the allocation values, as well as the approval of the eligibility of participants for participation in the incentive schemes. REMUNERATION OF NON-EXECUTIVE DIRECTORS AND TRUSTEES Non-executive directors/trustees are remunerated based on annual retainers, as well as attendance fees for each meeting attended. The value of the annual retainers and the attendance fees are benchmarked against fees paid in the financial and insurance industry by companies of a similar size to PPS. Non-executive directors/trustees do not participate in the PPS Group’s long-term or short- term incentive schemes. The trustees’ fees for the PPS Holdings Trust Board and its committees are subject to the ultimate approval by the Ordinary Members of PPS Holdings Trust at its annual general meeting (AGM) and for the remainder of the PPS Group companies at their respective AGMs. The REMCO meetings held during the year and the attendance thereat were as follows: Group Remuneration Committee 20 Feb 2020 19 May 2020 21 Sep 2020 18 Nov 2020 Dr D P du Plessis (Chairman) P P P P Mr C Erasmus P P P P Mr E A Moolla (Retired 9 June 2020) P P N/A N/A Dr S N E Seoka (Appointed 22 June 2020) N/A N/A P P Prof H E Wainer P AP P P AP = Apology N/A = Not applicable 102 | PPS INTEGRATED REPORT 2020